Wolfe Research Turns Bullish on Target (TGT), Cites Improving Execution

Target Corporation (NYSE:TGT) is included among the Top 10 Blue Chip Stocks with Growing Dividends.

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On June 23, Wolfe Research upgraded Target Corporation (NYSE:TGT) to Outperform from Peer Perform. It also assigned a $162 price target to the stock. Analyst Spencer Hanus also named the stock a top pick through the end of the year. In a research note, Hanus said Target is showing better execution as its new management team works to change the status quo. Wolfe believes the stock offers a favorable risk-reward profile, with upside potential to $160 and downside risk to $120. The firm also noted that Target’s summer store resets are gaining momentum and helping the retailer become a “destination once again.” Wolfe believes the company’s “future is increasingly compelling” and sees the potential for earnings per share to reach the mid-$9 range by 2027.

Earlier, on June 12, Guggenheim raised its price recommendation on Target to $145 from $140. It reiterated a Buy rating on the shares. The update came following a meeting with management, including CEO Michael Fiddelke and CFO Jim Lee. The discussion focused on improving the execution of a clear go-to-market strategy built around “specialization at scale.” Guggenheim noted that Target’s 35% year-to-date rally “suggests the easy money has been made,” though continued operational progress could attract longer-term investors.

Target Corporation (NYSE:TGT)  is a general merchandise retailer that sells products through its stores and digital channels. The company offers guests a mix of differentiated merchandise and everyday essentials at discounted prices.

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